Latest news with #LME-approved
Mint
10 hours ago
- Business
- Mint
MCX revises nickel futures specifications: Trading Day, unit and other key changes you must know
The Multi Commodity Exchange of India (MCX), the country's leading commodity derivatives exchange, has announced modifications to the contract specifications of Nickel futures, including changes to the trading unit, expiry date, and delivery arrangements, in a bid to enhance market efficiency. The trading unit has been reduced to 250 kgs from 1,500 kgs, effective from the September 2025 expiry contract onwards. The last trading day has also been shifted from the last calendar day of the expiry month to the third Wednesday of the month, or the preceding working day in case of a holiday. Additionally, MCX said there will no longer be designated additional delivery centers at Chennai, NCR, and Kolkata. However, in line with SEBI's circular, exchanges may accredit warehouses within a 100 km radius of the existing delivery center at Thane, Maharashtra. The revised specifications will include a trading unit of 250 kgs, a minimum tick size of ₹ 0.10 per kg, daily price limits of 4%, and margins set at a minimum of 10% or SPAN, whichever is higher. Delivery period margins will be calculated as the higher of 3% plus a 5-day 99% VaR of spot price volatility or 25%. Delivery will be compulsory with a tolerance limit of ±10%, and only LME-approved brands with a minimum purity of 99.80% will be accepted. MCX stated in its August 18 exchange filing that the modified contract specifications and trading parameters will be binding on all members of the Exchange and their constituents. Commenting on the development, Praveena Rai, Managing Director and Chief Executive Officer of MCX, said, 'These modifications are part of MCX's ongoing efforts to make nickel futures contracts more efficient, transparent, and aligned with evolving market needs. "By reducing the trading unit, revising expiry schedules, and streamlining delivery processes, we are providing market participants with greater flexibility, improved liquidity, and a product structure that matches global benchmarks," Praveena Rai further added. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
News18
12 hours ago
- Business
- News18
MCX revises nickel future specifications to enhance market efficiency
New Delhi, Aug 18 (PTI) Commodity bourse MCX on Monday announced modifications to the contract specifications of nickel futures contracts. The modifications, effective from August 18, include changes to the trading unit, expiry date, and delivery arrangements. 'These modifications are part of MCX's ongoing efforts to make Nickel futures contracts more efficient, transparent, and aligned with evolving market needs," MCX Managing Director and Chief Executive Officer Praveena Rai said. By reducing the trading unit, revising expiry schedules, and streamlining delivery processes, the exchange aims to provide market participants with greater flexibility, improved liquidity, and a product structure that matches global benchmarks, he added. As per the modifications, the trading unit will be reduced from 1,500 kgs to 250 kgs, effective for the September 2025 expiry contract and onwards. The last trading day of the contract will be shifted from the last calendar day of the expiry month to the third Wednesday of the expiry month, or the preceding working day in case of a holiday. Additionally, there will no longer be designated additional delivery centres at Chennai, NCR, and Kolkata. However, as per Sebi's circular, exchanges may accredit warehouses within a 100-km radius of the existing delivery centre at Thane, Maharashtra. The revised contract specifications for the exchange will include a trading unit of 250 kgs, a minimum tick size of Rs 0.10 per kg, daily price limits of 4 per cent, and margins set at a minimum of 10 per cent or SPAN, whichever is higher. Delivery will be compulsory with a tolerance limit of 10 per cent on either side, and only LME-approved brands with a minimum purity of 99.80 per cent will be accepted. According to MCX, the modified contract specifications and trading parameters will be binding on all members of the exchange and their constituents. PTI LUX LUX SHW (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Business Upturn
a day ago
- Business
- Business Upturn
MCX launches nickel futures contract effective August 18
By Aditya Bhagchandani Published on August 18, 2025, 08:22 IST The Multi Commodity Exchange of India Ltd. (MCX) has announced the launch of a Nickel futures contract, effective August 18, 2025. The exchange said the new contract is designed to improve price discovery, provide risk management tools, and encourage wider participation from the value chain. Nickel is a critical industrial metal used in stainless steel manufacturing, electroplating, EV batteries, and other engineering industries. With India heavily dependent on nickel imports, consuming industries often face price volatility and supply disruptions that affect margins. The launch of the new futures contract aims to provide these industries with a robust hedging mechanism, helping them mitigate both commodity price risk and currency risk, as the contract will be INR-denominated. The contract will be introduced with a trading unit of 250 kgs and a delivery unit of 1,500 kgs, effective from the September 2025 expiry. The designated delivery centre will be Thane, with deliveries allowed during the last three working days of the contract month. Only LME-approved primary nickel cathodes with a minimum purity of 99.80% will be accepted as good delivery. The tick size has been set at Rs 0.10 per kg, with daily price limits of 4% and margins fixed at a minimum of 10% or SPAN, whichever is higher. MCX Managing Director and CEO Praveena Rai said the launch is part of the exchange's efforts to make base metals contracts more efficient and globally aligned. 'Our vision is to make India our own price setter for commodities we consume in the country's drive towards security and self-sufficiency,' she stated. MCX, operational since 2003, is India's leading commodity derivatives exchange with about 98% market share in commodity futures contracts traded in FY25. It offers trading across bullion, energy, metals, agri commodities, and sectoral indices, and is also recognized as the largest commodity options exchange globally. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
RTHK
2 days ago
- Business
- RTHK
All eight metals warehouses in operation: FS
All eight metals warehouses in operation: FS Paul Chan says the government has established a task force to review issues related to gold and financial trade. File photo: RTHK Financial Secretary Paul Chan on Sunday said all eight warehouses that have been approved by the London Metal Exchange (LME) to store metals and issue trade documents are in operation. The idea was first floated in the Chief Executive's Policy Address last year. Writing on his official blog, Chan noted that work is now underway to create a 'commodity trading ecosystem' in the SAR. One of the most significant milestones, the financial chief added, is joining the LME's global warehouse network in January -- further connecting the country with the world's most active metals trading market. 'The establishment of LME-approved warehouses in Hong Kong has improved the efficiency of non-ferrous metal allocation, reduced logistics time and cost, and ensure a stable supply of critical metal resources in the region,' he said. 'This highlights Hong Kong's advantages as an international free port under the One Country, Two Systems principle, including zero-tariff, efficient and smooth customs clearance and globally accessible logistics network.' In the longer term, Hong Kong will be in a better position to carry out commodity transactions settled in renminbi, he added. Chan also said that as of early August, the SAR's LME-approved warehouses have attracted 8,000 tons of metals stored in the form of warrants. Warrants are title documents which allow ownership transfer without the metal physically moving out of the warehouse. The minister pointed out that the government has established a task force to review issues related to gold and financial trade, with details to be announced within this year.
RTHK
2 days ago
- Business
- RTHK
All eight metals warehouses in operation: FS
All eight metals warehouses in operation: FS Paul Chan says the government has established a task force to review issues related to gold and financial trade. File photo: RTHK Financial Secretary Paul Chan on Sunday said all eight warehouses that have been approved by the London Metal Exchange (LME) to store metals and issue trade documents are in operation. The idea was first floated in the Chief Executive's Policy Address last year. Writing on his official blog, Chan noted that work is now underway to create a 'commodity trading ecosystem' in the SAR. One of the most significant milestones, the financial chief added, is joining the LME's global warehouse network in January -- further connecting the country with the world's most active metals trading market. 'The establishment of LME-approved warehouses in Hong Kong has improved the efficiency of non-ferrous metal allocation, reduced logistics time and cost, and ensure a stable supply of critical metal resources in the region,' he said. 'This highlights Hong Kong's advantages as an international free port under the One Country, Two Systems principle, including zero-tariff, efficient and smooth customs clearance and globally accessible logistics network.' In the longer term, Hong Kong will be in a better position to carry out commodity transactions settled in renminbi, he added. Chan also said that as of early August, the SAR's LME-approved warehouses have attracted 8,000 tons of metals stored in the form of warrants. Warrants are title documents which allow ownership transfer without the metal physically moving out of the warehouse. The minister pointed out that the government has established a task force to review issues related to gold and financial trade, with details to be announced within this year.
